Resident Withholding Tax (RWT) is a tax deducted from investment income before the investor receives it. This minimises or eliminates provisional tax the investors would otherwise have to pay. If you pay yourself(/ves) interest on your business current account or loan account and this amounts to more than $5,000 per year, then RWT must be deducted and your business must be registered as an RWT payer. Subsequently regular returns must be made (either $Nil or reflecting amounts paid) and the RWT must be paid to the IRD.
RWT is one of those things that's easy to forget. If you are paying interest as above, or considering doing so, give us a call so we can advise you on what to do. We can handle your RWT returns also.
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